Samsung today released its earnings guidance for the third quarter of the year. Analysts and investors had high hopes from Q3 2016 following the company’s stellar performance in the second quarter of this year. However, once the Galaxy Note 7 recall was taken into account, many thought that a huge financial impact would be visible on the company’s balance sheet. Despite the recall Samsung’s Q3 2016 earnings guidance beats estimates.

Samsung Electronics announced today that it expects to post consolidated sales of 49 trillion won and an operating profit of 7.8 trillion won ($7 billion) against an estimate of 7.4 trillion won. There appears to be no major visible financial impact of the Galaxy Note 7 and analysts suggest that improved performance of the chip and display business have helped absorb that shock. Samsung’s Q3 2016 operating profit growth of 5.6 percent is unexpected but will be a welcome development for its investors and shareholders. Samsung is going to release the full results later this month.